The European Union's new anti-dumping law that grants separate treatment for imports under "significant market distortions" is not in compliance with World Trade Organization (WTO) rules, the Chinese Ministry of Commerce (MOC) said Thursday.
The concept of "significant market distortions" is not stated in the WTO rules, while there are no rules regarding "social and environmental dumping," the MOC said in an online statement.
The move is therefore groundless and will cause "serious damage" to the WTO's anti-dumping legal system, and has already been questioned by many WTO members, including China, according to the statement.
In its plenary session on Wednesday, the European Parliament gave the green light to amendments on its regulation for anti-dumping and anti-subsidized imports from countries outside the union.
The core of the amendment is using the "significant market distortions" concept as a replacement of the "analogue country methodology" when calculating dumping margins.
According to WTO requirements, anti-dumping investigations against imports from China under the "analogue country methodology" expired on Dec. 11, 2016. The methodology calculates the value of products from so-called "non-market economies" using costs of production in a third country.
As an important member of the WTO, the European Union should respect international rules, the MOC said.
China reserves its rights under the WTO dispute settlement mechanism, and will take the necessary measures to protect the rights of Chinese companies, it said.
